Cloud Market Size, Competitive Landscape and Market Forecast - 2029

SKU: DMICT3276 | Last Updated On: May 23 2022 | Available Formats

> Global Cloud Market Expected to reach a high CAGR By 2029: DataM Intelligence

Global Cloud Market is segmented By Type (SaaS, IaaS, Business Process As A Service (BPaaS), Cloud Management and Security Services, Desktop as a Service (DaaS), PaaS), PaaS By Solution Type (Application Development, Business Intelligence Platform (BIP), Application Infrastructure Middleware (AIM), Database Management Systems (DBMS), Others), PaaS By Distribution Channel (Direct Sales, Distributors), PaaS By Revenue Source (Consulting / Professional Services, Managed Services, Subscriptions & Licenses), PaaS By Deployment (On-Premises, Application Platform), PaaS By Organization Size (Large Enterprises, Small and Medium-Sized Enterprises (SME)), PaaS By End-User (Introduction, Banking & Financial Sector (BFSI), Telecommunications & IT), PaaS By Region (Americas, Europe, Asia-Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2022-2029

 

Market Overview

The "Global Cloud Market" Expected to reach a high CAGR of 21.4% By 2029: DataM Intelligence

Cloud computing offers various services through the internet. The resources include tools and applications like data storage, servers, networking, databases, and software. As cloud services become increasingly precise, with enterprises catering to customers' desires to meet their particular industry’s requirements, the cloud market is expected to grow rapidly during the forecast period. Cloud computing can be both private and public. Public cloud services offer services over the Internet for a fee. On the other hand, private cloud services only provide services to a certain number of people. The services are a system of networks that supply hosted services.

One of the original motivating factors is cost reduction. Even if initial investment in cloud migration creates a negative return on investment, the indirect cost saving for the IT department, such as when a business saves not carrying out software updates, manages to fail hardware or maintenance compliance. Scalability is another crucial driving factor for enterprises. Cloud computing allows customers to quickly scale a company's compute and storage needs to meet business demands. With a pay-as-you-go model, enterprises can better control their costs, scaling up or down to meet seasonal demand.

Market Dynamics

The global cloud market is expected to boost with companies looking to reduce hardware costs.

Companies looking to reduce hardware costs

Cloud computing blooms in various businesses, especially as remote work becomes more common. Although time-consuming, the cloud can deliver significant financial advantages such as budget savings and increased workplace efficiency. Shifting to the cloud can save firms an average of 15% on all IT costs. The reduction in hardware expenses is a benefit of public cloud computing. Hardware requirements are left to the vendor rather than being purchased in-house. New hardware can be enormous, expensive, and difficult for expanding companies. Cloud computing solves these problems because resources can be acquired quickly and readily. Even better, equipment repair or replacement expense is passed on to the vendors.

A cloud partner can help an engineering firm maintain all of the gear and infrastructure to stay competitive in the high-tech field. The operation of computer clusters and data centers necessitates specific space and resources. A cloud partner will deliver and optimize computer resources for the engineering firm at a lower overhead cost than investing in up-to-date hardware regularly. Working with a cloud computing partner also allows the engineering firm to use internal staff instead of configuring gear and software to take on challenging projects.

Rising security threats

As the cloud is an online service, it faces considerable security threats, which sometimes hinder the market growth as many large enterprises trust their on-premise IT infrastructure without cloud computing. According to the Annual State of the Cloud Survey, approximately 29% of companies face security as a substantial challenge and about 25% globally governance and control. Cloud services are mainly subject to common vulnerabilities, particularly PaaS systems, such as lax default application configuration and holes in secure socket layers (SSL) protocols.

Cyber-attacks are rapidly growing with the growing volume of data and increasing organizational initiatives toward digital transformation. The cyber-attacks, like Spectre, Meltdown, cloud malware injection attacks, account & service hijacking, and man-in-the-cloud attacks, generate a high degree of threats to enterprise data. The threats result in loss of business and shutdowns. As the service provider fully controls the data stored in the cloud, there is a risk that data may be subject to unauthorized resale and may undergo vendor lock-in and blackmail.

COVID-19 Impact Analysis

COVID-19 has been an extremely challenging year for many industries, but due to the effective use of cloud technology, the loss in lockdown was not severe. When COVID-19 hit unexpectedly, specific sectors were required to scale immediately to meet an exponential increase in demand due to lockdown restrictions and work-from-home situations (e.g., telemedicine, videoconferencing and e-Commerce). In contrast, others faced near-overnight elimination of demand (e.g., show tickets, travel and ridesharing).

To mitigate the crisis, cloud platform providers have been central in helping businesses manage these impacts as they provide online services without the need to go to the office by employees. Collaboration platforms have enabled workforces to stay connected and operational, even on lockdown. They have also offered new and upgraded application platforms such as Zoom and Google Meet to mitigate consumer situations.

It has also been witnessed that companies based on cloud infrastructure have been effortlessly able to scale their businesses without adding incremental costs. For instance, before COVID-19, the revenue growth of Amazon Web Services was around 22-23%. Still, according to the Journal of Electronic Science and Technology, the growth rate increased due to ongoing coronavirus outbreaks globally, which are yet to come back to their normal condition.

Segment Analysis

The global cloud market is segmented based on type, organization size, end-user, revenue source, distribution channel, and region.

Companies looking to strategically upscale and downscale their operations are boosting the need for cloud services in the telecommunications & IT sector

Based on end-user, the global cloud market is segmented into the banking & financial sector, telecommunications & IT, public sector & government, consumer goods & retail, healthcare & life sciences, logistics & transportation, education & research and others.

The elastic nature of cloud computing provides for dynamic accommodation of jobs, such as traffic spikes or high-performance workloads, allowing enterprises to proactively upscale and downscale their operations to maximize growth possibilities and profit from them. The mobile revolution is creating exponential increment in access and customer partaking online. Smartphones are quickly becoming the leading means of connectivity. A new IBM Institute for Business Value Mobile Enterprise survey found that 62% of responding communication service providers (CSP) followed mobile for enterprise innovation. Additionally, 54% said mobile was important to improve response time and customer satisfaction. All these developments also increase the use of the cloud in the telecommunication sector. The growing use of social media by the millennial generation and digital natives and the presence of various agencies to promote their agenda worldwide is forcing the sector to increase the use of the cloud, as most of the popular social media platforms are operated through the cloud.

The growing hyper digitization of the world, with digital content generated and accessed more rapidly than ever before, is also driving the use of the cloud by telecommunication vendors to manage their data. For example, worldwide, 2.5 quintillion bytes of data are generated daily. Internet traffic also increases globally due to the growing consumer use of video and mobile data. All the factors are helping the market growth of the cloud.

Geographical Analysis

Presence of top cloud service providers and distributors is expected to grow demand in North America

Increasing innovation in applications, growing use of online apps and services, increased use of smartphones in almost all computer-related services and the presence of major service providers are some of the major driving forces propelling the region's market growth. The leading market players in the cloud market, such as Amazon, Google, Oracle, Microsoft, Salesforce and IBM, are all situated in the U.S. According to cloud-based company Intricately.com, North America has the highest regional distribution in terms of cloud buyers, which was around 516,000 in 2019 and 485,000 in terms of cloud hosting buyers.

According to the United Nations Conference on Trade and Development, the geography of the digital economy is highly concentrated in two countries: the U.S and China, in which the U.S. has around 68% of the market capitalization value of the world’s 70 largest digital platforms in 2019. With growing organizational cloud adoption in the region that has resulted in complex environments, telecommunication companies in this region are intensifying their presence in the cloud space by acting as cloud resellers; offering managed services and supporting companies in managing hybrid and multi-cloud environments.

Competitive Landscape

The global cloud market is fragmented, with top players accounting for significant shares. The cloud market grows with over 360 vendors and about 550 platform providers across 22 segments. The recent surge in demand for the platforms due to COVID-19 has resulted in the emergence of new start-ups to capture innovative cloud services market share. The players in the global cloud market include Cisco Systems Inc, Microsoft, Oracle, International Business Machines Corporation, Google, SAP SE, Salesforce.com, Inc., Quickbase, Inc., ThoughtSpot, Inc., QlikTech International AB, Zoho Corporation Pvt. Ltd., ServiceNow, Workday, Inc., Adobe, among others.

Microsoft

Overview: Microsoft serves its products and services through eight (8) categories: applications and infrastructure, data and AI, developer tools, modern workplace, business applications, security and gaming.

Microsoft created Microsoft Azure, a cloud computing service for building, testing and managing applications and services through Microsoft-managed data centers. Microsoft's global network of data centers includes more than one million servers in more than 100 data centers. The company has four (4) operating centers for licensing, manufacturing, operations and logistics inU.S, Ireland and Singapore.

Product Portfolio:

  • Microsoft Azure: It provides industry solutions in retail, manufacturing, government, healthcare and life sciences and financial services. It has more than 200 sub-products. Some of the popular services are as follows:
    • Virtual Machines
    • Azure Cosmos DB
    • Azure Kubernetes Services (AKS)
    • Windows Virtual Desktop
    • Azure Functions
    • Azure Cognitive Services

Key Development:

  • In 2020, Microsoft launched Azure Communication Services to help businesses reach customers. It is enabled by voice, text chat, video and connections into SMS and public switched telephone networks across applications, websites and mobile platforms.

Why Purchase the Report?

  • To visualize the global cloud market segmentation by type, organization size, end-user, revenue source, distribution channel and region and understand key commercial assets and players.
  • Identify commercial opportunities in the global cloud market by analyzing trends and co-development.
  • Excel data sheet with numerous data points of cloud market-level with four segments.
  • PDF report consisting of cogently put together market analysis after exhaustive qualitative interviews and in-depth market study.
  • Product mapping available in excel consists of key products of all the major market players

The global cloud market report would provide approximately 77 tables, 79 figures and almost 220 pages

Target Audience 2022

  • Private Service Providers
  • Public Service Providers
  • Subscriptions & License Providers
  • Education & Research Institutes
  • Research Professionals
  • Emerging Companies
  • Distributors

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Trending Topics

Industry 4.0 Market

Enterprise Cloud Service Market

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